Bertrand-Cournot profit reversal in a vertical structure with cross ownership

Arijit Mukherjee; Leonard F.S. Wang; Ji Sun

doi:10.1016/j.econlet.2024.111681

Bertrand-Cournot profit reversal in a vertical structure with cross ownership

Arijit Mukherjee^*, Leonard F.S. Wang, Ji Sun

^*Corresponding author for this work

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

3 Citations (Scopus)

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Abstract

We provide a new reason for Bertrand-Cournot profit reversal. In a two-tier industry with a profit-maximising input supplier and symmetric final good producers, we show that the profit reversal occurs under passive cross ownership among firms. © 2024 The Author(s)

Original language	English
Article number	111681
Journal	Economics Letters
Volume	238
Online published	29 Mar 2024
DOIs	https://doi.org/10.1016/j.econlet.2024.111681
Publication status	Published - May 2024
Externally published	Yes

Research Keywords

Bertrand competition
Cournot competition
Cross ownership
Profit
Two-tier industry

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This full text is made available under CC-BY 4.0. https://creativecommons.org/licenses/by/4.0/

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10.1016/j.econlet.2024.111681

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title = "Bertrand-Cournot profit reversal in a vertical structure with cross ownership",

abstract = "We provide a new reason for Bertrand-Cournot profit reversal. In a two-tier industry with a profit-maximising input supplier and symmetric final good producers, we show that the profit reversal occurs under passive cross ownership among firms. {\textcopyright} 2024 The Author(s)",

keywords = "Bertrand competition, Cournot competition, Cross ownership, Profit, Two-tier industry",

author = "Arijit Mukherjee and Wang, {Leonard F.S.} and Ji Sun",

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doi = "10.1016/j.econlet.2024.111681",

language = "English",

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journal = "Economics Letters",

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T1 - Bertrand-Cournot profit reversal in a vertical structure with cross ownership

AU - Mukherjee, Arijit

AU - Wang, Leonard F.S.

AU - Sun, Ji

PY - 2024/5

Y1 - 2024/5

N2 - We provide a new reason for Bertrand-Cournot profit reversal. In a two-tier industry with a profit-maximising input supplier and symmetric final good producers, we show that the profit reversal occurs under passive cross ownership among firms. © 2024 The Author(s)

AB - We provide a new reason for Bertrand-Cournot profit reversal. In a two-tier industry with a profit-maximising input supplier and symmetric final good producers, we show that the profit reversal occurs under passive cross ownership among firms. © 2024 The Author(s)

KW - Bertrand competition

KW - Cournot competition

KW - Cross ownership

KW - Profit

KW - Two-tier industry

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UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-85190734081&origin=recordpage

U2 - 10.1016/j.econlet.2024.111681

DO - 10.1016/j.econlet.2024.111681

M3 - RGC 21 - Publication in refereed journal

SN - 0165-1765

VL - 238

JO - Economics Letters

JF - Economics Letters

M1 - 111681

ER -

Bertrand-Cournot profit reversal in a vertical structure with cross ownership

Abstract

Research Keywords

Publisher's Copyright Statement

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